The Analysis That Monetary Policy Is Effective in the Short-Run

question 21

Multiple Choice

The analysis that monetary policy is effective in the short-run but not in the long-run can be presented by which of the following statement?

• A)The short-run AS curve is flat,but the long-run AS is vertical.
• B)The short-run AS curve is positively sloped,but the long-run AS is flat.
• C)The short-run and the long-run AS are both positively sloped.
• D)The short-run AS curve is positively sloped,but the long-run AS is vertical.

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Definitions:

Physical Exercise

Any physical activity that improves or sustains physical health and overall well-being.

Terminal Decline

The phenomenon of accelerated deterioration of cognitive and physical function closely preceding death.

Mental Ability

Refers to the capacity to perform cognitive tasks, solve problems, and learn from experience, often assessed through intelligence tests.

Death

The cessation of all biological functions that sustain a living organism.